SERSEL: Pioneering Rail Services in Nigeria Since 2024

In view of the Nigeria’s exponential population growth with resultant pressure on the existing infrastructures which has increased many folds, and the decrease in the available revenue to the State, the urgent need for private sectors intervention in the funding and development of the nation’s critical infrastructures has become inevitable.  

This project became very necessary in order to provide a sustainable and cheaper transportation system and facilitate faster industrialization of regional economies without placing any debt burdens on the State. 

This project shall see SERSEL in partnership with the private sector investors, international partners, financial institutions, and other regional bodies, construct standard gauge, single/double track rail-line (or narrow-gauge, and refurbish already existing rail-tracks where necessary, if allowed by the ministry) that would connect as many States as possible in Nigeria, and provide the linkages with already existing rail-lines, and to exit-States.

In doing this, SERSEL shall identify economically very viable routes for cargo traffic, and mobilize funds to design, and construct rail-tracks to link up states within the area.

It is on this basis that, SERSEL has selected the route Lagos – Enugu as the first cargo rail-track under this model for construction. The route Lagos – Enugu is estimated to be 665 km.

The remaining 685 km shall link up the Maiduguri line which traversed from Port-Harcourt through Enugu to Maiduguri to facilitate movement of goods from Maiduguri to the South-East , and the South-South regions. 

The Public Private Partnership as proposed, shall see SERSEL invest the sum of $4.05 Billion (Four Billion US Dollars) within a period of 7 years (seven) in the construction of 1,350 km Standard Gauge, Rail-Track. The investment shall be done under a revolving fund of $1.35Billion every 2yrs.  This investment size can increase depending on the investible funds available and areas of engagement.

And with the completion and commencement of operation of any of the sections of the tracks, SERSEL shall retain certain percentage of the proceeds from the operation until the total investment, plus 4% cost of funds is recovered.

At the recovery of the investment amount plus 4% cost of funds, SERSEL shall retain certain percentage of the total investment as permanent equity in the project (i.e. the constructed areas).

SERSEL shall also work with the Federal Ministry of Women Affairs and Social Development to make sure that 220,000 women in Nigeria are able to benefit directly from our investments model through permanent allocation of certain percentage of the achievable profit-shares, to women across the 36 States of the federation plus the federal capital territory.  

SERSEL is very aware of the capital-intensive in nature, the construction of such critical infrastructure like the rail-line can be, therefore we have developed out-of-the-box strategy, with a model that would see to the successful construction of, as many linkages as possible. And we must not forget that under this model, even a 1km constructed rail-line in Nigeria by SERSEL shall remain as a success to the NRC , SERSEL , and the Nigerian people in general because it would be a demonstration of the collective will of the people to take their destiny in their hands, by helping the government to save the country from the strangulating debt profile.

Also, this would be the first time that such a model shall be applied to assist the federal government in the construction of such a critical infrastructure without placing a debt burden on the State (which is suffocating our economy)

SERSEL has secured the participation of very important local content partners, and technologically advanced international partners.